Output method/value added approach

Question 1

GDP =

Answer 1

Sum of all value added to products during the production of g/s

Question 2

How does the output method measure NI

Answer 2

by directly calculating the valuein the 3 staged of productionof output produced. This is done by adding the value of output produced in the 3 staed of production
Primary, secondary and tertiary sector

Question 3

Intermediate goods

Answer 3

A good used in the production of a final g/s
This can bring up the problem of double counting

Question 4

GDP (output method)

Answer 4

= Gross value of output - value of intermediate goods